WirepolicyDextape brief
Binance’s $6.3 Billion Hack Has South Korea Asking Exchanges to Hold More Crypto Offline
The Financial Services Commission called Upbit, Bithumb and other exchanges to an emergency meeting and asked for more offline storage, extra reserves and round-the-clock withdrawal monitoring.
Dextape brief
South Korea's Financial Services Commission convened an urgent meeting on Nov. 2 and asked major crypto platforms to shift a larger share of customer tokens into offline storage, according to the agency, following a roughly $6.3 billion loss at Binance from its online wallets. Operators were also told to watch deposits and withdrawals without pause, expand incident-response teams, flag suspicious access attempts swiftly, and hold additional reserves. No Korean exchange was named and no new ratio was set. Under existing rules, operators must keep at least 80% of user crypto offline. Figures from late September show Upbit at 99.17%, Bithumb at 94.76%, and Streami, which runs Gopax, at 80.54%. News1 reported on Nov. 3 that industry sources discussed a 99% level.
Why it matters: It shows regulators are pressing exchanges to hold more customer funds offline and strengthen security after a major hack, which bears directly on how user holdings are protected.
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